My first rental during Covid and worried renter wont pay rent

[Solomon Stavis]

Hello BP community! 

I'm looking to buy my first investment rental and I came across what I think is a great deal in Jacksonville, Florida. The concern is buying a house during COVID where there is a chance the renter will not pay rent. Is there anything I can do while the house is under contract, to verify the renters' employment or any other information to reduce the risk of the renter not paying rent? The renter has been there since March 2020, so not a super long history. Any thoughts as to how I should approach this as a first-time buyer?

Thank you! 

[Lynnette E.]

Originally posted by @Solomon Stavis:

Hello BP community! 

I'm looking to buy my first investment rental and I came across what I think is a great deal in Jacksonville, Florida. The concern is buying a house during COVID where there is a chance the renter will not pay rent. Is there anything I can do while the house is under contract, to verify the renters' employment or any other information to reduce the risk of the renter not paying rent? The renter has been there since March 2020, so not a super long history. Any thoughts as to how I should approach this as a first-time buyer?

Thank you! 

 Chances are that this renter is under a lease and you are stuck with him/her.  You can ask to review their application, credit check, etc.  If you think there is a high risk, then in your offer to buy the house ask for a closing cost credit equal to the amount of rent that would be due until date the eviction hold is expected to be lifted in that area.  Then if he pays, fine, If not you got the credit at closing for the amount you may never collect.